Editor’s Note:

This is the third article in SurePoint’s Beyond Practice Management: The Future of Firm Performance series, a multi-part blog series examining how forward-thinking firms align people, processes, and technology to redefine success and accelerate performance. Explore the full series here. 

Next in the Beyond Practice Management series, Phil Flora, Vice President of Sales, SurePoint Technologies, examines the talent crisis facing today’s law firms—and how data-driven hiring and retention strategies can turn people into a true performance advantage.

In the last article, The Power of Change: Aligning People, Process, and Performance for Growth, Olivia Mockel explored how law firms must embrace transformation as a discipline—not a disruption. But change alone isn’t enough. To truly unlock Firm Performance, firms must invest in the people who will drive it.

Talent is the ultimate competitive advantage. Yet across the legal industry, firms are struggling to attract, retain, and empower top performers. Attrition remains high, hiring is expensive, and retention challenges persist—even in firms with strong reputations.

This isn’t just a people problem. It’s a performance problem. Firms that fail to modernize their talent strategy risk losing their edge in a market that increasingly rewards agility, innovation, and culture.

The Talent Crisis Undermining Performance in Law Firms

Annual turnover rates in law firms have reached as high as 25%, with mid-level associates most likely to leave. The cost of replacing a single associate can exceed $500,000 when factoring in lost productivity, recruitment fees, and training—not to mention the disruption to clients and internal teams.

Traditional hiring models are no longer sufficient. Pedigree-based recruiting, subjective evaluations, and outdated retention strategies are failing to meet the expectations of today’s legal workforce.

To reverse this trend, firms must adopt a data-driven approach to hiring and retention—one that turns talent into a measurable business advantage.

Why Traditional Hiring Models Fall Short

For decades, law firm hiring has emphasized pedigree and credentials—law school rankings, grades, and prior experience. But these indicators are poor predictors of long-term performance or cultural fit.

Three core issues stand out:

• Overemphasis on pedigree: Graduates from top-tier schools don’t consistently outperform peers from other institutions.
• Limited use of data: Few firms apply predictive analytics to hiring decisions, despite its proven success in other industries.
• Lack of structured development: Without clear mentorship or career progression, firms struggle to retain talent.

Forward-thinking firms are moving beyond intuition. They’re integrating performance and recruiting data to make more confident, equitable hiring decisions—and they’re seeing measurable results.

The firms that are winning the war for talent are those that use data not only to inform hiring, but to support attorneys throughout their careers with clear paths, meaningful work, and the right technology.

Predictive Analytics: A Smarter Way to Hire

Other industries have long relied on predictive analytics to identify the best candidates and forecast performance. Law firms now have the same opportunity to leverage predictive analytics to identify top candidates and forecast performance. By analyzing historical hiring data, associate metrics, and client satisfaction scores, firms can make smarter, more strategic decisions.

Benefits include:

• Improved performance forecasting: Analytics highlight communication styles, work habits, and client interaction skills that signal long-term success.
• Stronger cultural alignment: AI-driven assessments evaluate compatibility with firm values and working styles.
• Reduced turnover: Data-guided hiring improves retention by identifying who are more likely to thrive.

By the Numbers: 28% of all attorneys in the AmLaw 200 are at risk of leaving their firms—closely aligning with the 29% turnover rate we observed in 2024 (SurePoint Legal Insights).

Building a Retention-Focused Culture in Law Firms

Attracting talent and hiring is only half the battle. Retaining top talent requires a workplace where attorneys can grow, contribute, and feel valued.

According to industry surveys like the Law Firm Culture Survey by Major, Lindsey & Africa, attorneys want more emphasis on well-being, work-life balance, and career development. Firms that align with these expectations are winning the war for talent.

Key strategies include:

• Transparent career progression: Clear benchmarks for advancement build trust and engagement.
• Flexible work arrangements: Hybrid and remote options are now expected, not exceptional.
• Continuous professional development: Training and leadership programs signal investment in people.
• AI-enhanced workflows: Automating administrative tasks frees attorneys to focus on high-value work.
• Diversity, equity & inclusion: Firms that prioritize DEI see stronger cohesion and performance outcomes.

How Leading Firms Are Getting Ahead

The most successful firms aren’t waiting for attrition to force change. They’re leading with innovation.

Examples include:

• Implementing real-time performance feedback systems to replace outdated annual reviews.
• Expanding mentorship programs that connect junior attorneys with experienced partners.
• Using workforce analytics to monitor engagement and predict turnover risks before they escalate.

These firms understand that talent strategy is business strategy. They’re building cultures that attract top performers—and keep them.

The Future of Talent Management

As client expectations evolve and legal service delivery becomes more complex, law firms must ensure they have the right people to thrive. Those that embrace data-driven hiring, AI-powered retention strategies, and a culture of continuous development will lead the next era of legal performance.

Questions every firm should ask:

• Are we leveraging data to make better hiring decisions?
• Do we know which attorneys are at a high risk of leaving?
• Do we provide attorneys with a clear and compelling career trajectory?
• How well are we adapting to the changing priorities of today’s legal workforce?

By answering these questions—and acting on the insights—firms can reduce costly turnover, build stronger teams, and position themselves for long-term success.

Next in the Series: Winning the war for talent is only part of the equation. In the next article, Dan Hurley, SurePoint’s Chief Commercial Officer, explores how forward-thinking firms are using connected systems, automation, and AI to create a modern workplace—and a measurable edge.

Follow the full series: Beyond Practice Management: The Future of Firm Performance.